University of Wisconsin President Ray Cross on Tuesday asked the Legislature's budget-writing committee to approve a new public authority for the UW System, a "dedicated and stable funding stream" and to reduce the governor's proposed $300 million budget cut over the next two years.

Shortly after he finished his testimony, a handful of protesters burst into the room shouting, "No cuts, no deals." Followed by four Capitol police officers, the protesters marched past the table where Cross was sitting to give testimony before the Joint Committee on Finance.

If Park Bank is liable for not spotting Sujata "Sue" Sachdeva's $34 million embezzlement from Koss Corp. and has to reimburse the company, Koss Chief Executive Michael Koss should also be ordered to personally pay the public company he runs, the bank argues in a new lawsuit.

Grant Thornton, Koss Corp.'s former auditor, should also have to pay a portion of any award that may be ordered, Park Bank argued in the latest twist in a long-running court fight stemming from Sachdeva's massive embezzlement.

"Park Bank denies any and all liability to Koss in this case," the bank said in its action. "Nevertheless, should Park Bank be found liable to Koss (Corp.) and required to pay damages to Koss, in this case, those damages will have been the result of a common liability of Park Bank, Michael Koss and Grant Thornton, thereby entitling Park Bank to (a) contribution from Michael Koss and Grant Thornton."(3)

Glendale Hilton to be converted to Holiday Inn

The Milwaukee River Hilton Hotel, in Glendale, would be converted into a Holiday Inn under a new proposal filed with city officials.

CMH Milwaukee River Inn LLC, a newly formed investors group, has the 162-room hotel, 4700 N. Port Washington Road, under contract, according to a Glendale Plan Commission review application.

If CMH completes its purchase of the hotel, the property will go through significant renovations, including expanding the lobby to give it a new bar area, views of the Milwaukee River and a more contemporary look, according to the application.

The ballroom and meeting spaces also would be renovated. And the hotel's guest rooms would get new bathrooms, carpets, furniture and other upgrades, the application said.

CMH is negotiating with the Holiday Inn franchise to give the hotel a new brand once the Hilton franchise expires in April, the application said. CMH is conducting its due diligence review of the properrty, and hopes to take ownership around April 15.

The Holiday Inn would be managed by Greenbelt, Md.-based Chesapeake Hospitality Management.

The Hilton opened in 1974. Last year, its current owner, an investment group owned by the estate of Houston developer Jim Grisebaum, sought city permission to convert the hotel to housing for up to 324 Chinese students attending Milwaukee-area private high schools.

At meetings in September and October, the Glendale Common Council unanimously blocked the for-profit Wisconsin International Academy's plan to buy the hotel for $8 million and convert it into student housing.

Glendale council members said they were concerned about losing hotel room tax revenue. They also said the Hilton and its Anchorage restaurant are major destinations.

The Hilton's customers include travelers drawn from two nearby business parks, Estabrook Corporate Park and Glendale Technology Center. Several residents from Glendale and other North Shore communities sent letters and emails to city officials opposing the academy's proposal.

The current owners said last year the hotel would likely close in April, once the Hilton franchise expired, because of a lack of interest from other investors in buying and rebranding the hotel.

Wisconsin International Academy now plans to buy and convert the 127-room Days Inn hotel, at 11811 W. Blue Mound Road, and its restaurant and banquet center into the Wisconsin International Center. That proposal has received approval from the Wauwatosa Plan Commission.

Commercial Real Estate News

A large industrial building, located on Milwaukee's north side, has been sold to a local investment group that plans to continue redeveloping the property.

An affiliate of Phoenix Investors LLC purchased a 206,200-square-foot portion of the former Square D industrial plant, 4041 N. Richards St., for $1.45 million, the firm announced Monday. It was sold by Stag II Glendale LLC, a subsidiary of Boston-based Stag Industrial Inc., in a transaction brokered by Robert Dufek of Dufek Realty LLC and Jim Larkin of Colliers.